News

News

2 August 2018 y.

Shareholders of Transmashholding and LocoTech-Service merged their stakes for efficient management and long-term development

Holders of 100% stock in JSC Transmashholding, and 100% shares in OOO LocoTech-Service consolidated their equity investments and became holders of 100% equity of the largest Russian railway manufacturer JSC Transmashholding and the leading rolling stock maintenance OOO LocoTech-Service.

The capital stock is allocated between a group of Russian businessmen and the French company Alstom Holdings. Alstom Holdings, previously holding 33% in Transmashholding, has got 20% in a new corporation.

JSC Transmashholding and OOO LocoTech-Service will remain legally independent. The management team led by Kirill Lipa will continue their employment with Transmashholding; Yuri Degtyarev and his colleagues will keep executive roles in Locotech. Shareholders plan gradual integration of operations, eventually creating the world’s fourth revenue generating rolling stock manufacturer and service provider. The total revenue of two companies amounted to EUR 3.4 billion in 2017 and is projected to reach EUR 4.2 billion in 2018.

The merge between Transmashholding and Locotech-Service mirrors the global trend of integration, seen in recent years in machine manufacturing all over the world, and is aimed at increasing global marketability. It will enable full service lifecycle locomotive delivery contracts for OAO Russian Railways and add value to the manufacturer’s export projects through maintenance services. Unification of research capacities of the two companies will increase efficiency of investments in research and development while reducing the time to implement research projects.

Additionally, shareholders and the management are confident that Locotech’s data on performance of the Russian locomotive fleet in the course of its operation will help increasing marketability of products manufactured at Transmashholding sites.